The acquisition is said to enhance Samsung Bioepis’ business operations, advance its sales growth, improve operating margin, and strengthen its biosimilar development capabilities
Samsung Bioepis headquarters in South Korea. (Credit: Samsung Bioepis)
South Korean biotechnology firm Samsung Biologics has closed the previously announced acquisition of Biogen’s entire 50% equity stake in their joint venture, Samsung Bioepis, for $2.3bn.
Biogen and Samsung Biologics have established the joint venture in 2012, and Biogen has increased its stake in the JV from an initial stake of 15% to 50%, in 2018.
In January this year, the two companies signed an agreement, allowing Samsung Biologics to fully acquire Samsung Bioepis.
Under the terms of the agreement, Samsung Biologics has made the initial payment of $1bn. With this, Samsung Bioepis will become a wholly-owned subsidiary of Samsung Biologics.
The South Korean biotechnology company will pay the remaining consideration of $1.3bn in multiple staged payments over the coming two years.
The acquisition is said to enhance Samsung Bioepis’ business operations, advance its sales growth, improve operating margin, and strengthen its capabilities in biosimilar development and novel drug development.
Samsung Biologics CEO and president John Rim said: “Today’s announcement marks a significant milestone for Samsung Biologics in our continued venture into the biosimilar business and accelerating biosimilar growth.
“By leveraging our extensive experience as a leading CDMO, we will further contribute to saving lives of the patients and address a wide array of diseases.”
Biogen and Samsung Bioepis will continue their exclusive agreements, including those for the commercialisation of their current biosimilars portfolio.
They will continue to market BENEPALI, FLIXABI, IMRALDI in Europe and prepare for the upcoming launches BYOOVIZ and submit regulatory filings for SB15 in major global markets.
In addition, Biogen intends to pursue further biosimilar opportunities that enhance patient access to biologic medicines.
Samsung Biologics said that the acquisition was partly funded by a paid-in capital raise of KRW3 trillion (around $2.5bn) by issuing new shares.
In addition to the acquisition, the company is currently building Plant 4, which is anticipated to commence partial operations in October this year.
Furthermore, Samsung Biologics is underway procuring an additional 350,000m² area site for its Bio Campus II, which will be 30% larger than its current site for future growth.